Definition Of


Decentralization means that the control of operations is delegated to many managers throughout the organization. The term segment is sometimes used to identify an area of responsibility in decentralized operations.

Share it:

More from this Section

  • Human element
    The human element is an important factor in every system of internal control. A good system can become ineffective as a result of employee fatigue, carelessness, or indifference.
  • Return on common stockholders' equity
    A widely used profitability ratio is return on common stockholders’ equity. It measures profitability from the common stockholders viewpoint
  • Financing activities
    Financing activities refer to cash flow activities that include (a) Obtaining cash from issuing debt and repaying the amounts borrowed and (b) obtaining cash from stockholders...
  • Consigned goods
    Consigned goods referred as goods that held for sale by one party (the consignee) although ownership of the goods is retained by another party (the consignor).
  • Depletion
    The allocation of the cost of natural resources to expense in a rational and systematic manner over the resources to expense in a rational and systematic manner over...
  • Production cost report
    A production cost report is the key document management uses to understand the activities in a department; it shows the production quantity and cost data related to that department.
  •  Direct labor budget
    The direct labor budget contains the quantity (hours) and cost to direct necessary to meet production requirements. The total direct labor cost is derived from the following formula.